Cabinet Clears 117-km Bengaluru Business Corridor Project: Four Compensation Options for Farmers, Project to Ease 40% Traffic in Two Years
Bengaluru: The Karnataka Cabinet has approved the long-awaited 117-kilometre Bengaluru Business Corridor (BBC) — previously known as the Peripheral Ring Road (PRR) — aimed at easing traffic congestion, creating a new growth corridor, and providing multiple compensation options for farmers whose land is being acquired.
Deputy Chief Minister and Bengaluru Development Minister D.K. Shivakumar, announcing the decision after the Cabinet meeting at Vidhana Soudha, said:
“This project marks a new chapter in Bengaluru’s development. It will provide alternative connectivity to NICE Road, ease congestion by 40%, and be completed within two years.”
Four Compensation Options for Farmers
To ensure fair compensation, the government has approved four options for landowners affected by the project:
- Cash compensation — double the market rate in urban areas and triple in rural zones.
- Transferable Development Rights (TDR).
- Floor Area Ratio (FAR) benefits.
- Alternative land allotment — 35% commercial or 40% residential land in newly developed layouts.
D.K. Shivakumar clarified that landowners with less than 20 guntas will receive only cash compensation, while those losing larger tracts can choose any one of the four options.
“Some suggested auctioning the land, but we decided to return it to farmers for their livelihood. It’s both a social and developmental decision,” he said.
Project Details: From Tumakuru Road to Mysuru Road
The 117-km corridor will stretch from Tumakuru Road through Yelahanka, Electronics City, and Mysuru Road, up to the Bengaluru Exhibition Centre.
Of the total stretch, 73 km lies in the northern zone and the remainder in the southern parts of Bengaluru.
The road width has been reduced from the originally proposed 100 metres to 65 metres, similar to the Bengaluru–Mysuru Expressway. It will include service roads on both sides, a central metro alignment (5 metres), and a toll-based main carriageway.
Financing and Implementation
The project will be implemented by the Bengaluru Development Authority (BDA), financed through a ₹27,000-crore HUDCO loan backed by state government guarantee.
Roughly 1,900 families will be affected by the land acquisition, but the government assured there would be no denotification under any circumstances.
“If any farmer refuses compensation, the amount will be deposited in court and the project will proceed,” said Shivakumar.
Cost and Timeline
The Deputy CM stated that the project, earlier estimated at ₹27,000 crore, may now cost around ₹17,000 crore due to farmers opting for land-based compensation.
Completion is targeted within two years, providing significant relief to traffic across Tumakuru, Nelamangala, Electronic City, and Mysuru Road corridors.
TDR Exchange System Soon
To streamline the compensation process, a dedicated TDR exchange system will be introduced. Farmers can register and trade development rights transparently through this platform.
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